Hulic (3003) Q2 2024 earnings summary

Executive summary

• Achieved record-high profits across all profit items for 2Q FY2024, with ordinary profit at JPY64.8 bn, representing 45% progress toward the annual forecast of JPY144.0 bn.

• Operating revenue for 2Q FY2024 rose 11.3% year-over-year to JPY204.9 bn, with operating profit up 3.4% to JPY68.9 bn and profit attributable to owners of parent nearly flat at JPY44.1 bn.

• Over JPY370.0 bn invested cumulatively in 2Q, with an additional JPY70.0 bn nearly confirmed for 3Q onward.

• Segment operations in real estate, insurance, hotels/ryokans, and others all contributed to revenue growth.

• Riso Kyoiku became a consolidated subsidiary, expanding the Children Education Business.

Financial highlights

• Operating revenue rose 11.3% year-over-year to JPY204.9 bn; operating profit increased 3.4% to JPY68.9 bn.

• Ordinary profit grew 4.2% year-over-year to JPY64.9 bn; profit attributable to owners of parent was stable at JPY44.1 bn.

• Comprehensive income decreased 10.5% year-over-year to JPY52.3 bn.

• Total assets at the end of 2Q FY2024 were JPY2,815.6 bn, up JPY335.1 bn from FY2023.

• Net assets increased to JPY816.3 bn, with an equity ratio of 28.3%.

Outlook and guidance

• FY2024 targets: operating revenue JPY500.0 bn, operating profit JPY153.0 bn, ordinary profit JPY144.0 bn, profit attributable to owners JPY98.0 bn.

• FY2029 ordinary profit target set at JPY180.0 bn.

• No revision to previously announced forecasts; business performance is proceeding as planned.

• Investment plans remain robust despite a challenging acquisition market.